FTM 482 EXAM 3 COMPLETE QUESTIONS
WITH 100% VERIFIED ANSWERS
\.International Pricing - ANSWERS-- setting and changing prices are key marketing
decisions
- Of all the tasks facing the international marketer, determining what price to
charge is one of the most difficult
- An offering's price must reflect the quality and value the consumer perceives in
the product
Usually more localized than product or advertising decisions
- Maximizing profits depends on:
i.) Price sensitivity of local customers
ii.) Prices of competing products and services
- Companies tend to more closely align pricing policies across countries similar in
customer characteristics, economic conditions, and stage of the product lifestyle.
\.Skimming Pricing: - ANSWERS-setting the highest initial price that customers
really desiring the product are willing to pay
- May occur at the introduction stage of the product life cycle
- When a company is the only seller of a new or innovative product
- May be used to maximize profits until competition forces a lower price
Ex: Tommy Hilfiger and Rebook in India
,\.penetration pricing - ANSWERS-setting a low initial price on a new product to
appeal immediately to the mass market
\.cost-plus pricing - ANSWERS-Per-unit product costs are the sum of all past or
current direct and indirect manufacturing and overhead costs + additional costs &
expense when goods cross national borders.
\.total cost depends on - ANSWERS-Destination
Mode of Transport
Tariffs
Various fees
Handling charges
Documentation costs
\.Export Price Escalation - ANSWERS-the increase in the final selling price of goods
traded across borders
\.Flexible cost-plus pricing - ANSWERS-ensures that prices are competitive in the
contest of the particular market environment
\.Factors in Price Escalation - ANSWERS-- cost of exporting
- taxes, tariffs, and administration costs
- Inflation
- deflation
- middleman and transport costs
, - exchange rate fluctuations
\.Cost of exporting - ANSWERS-shipping costs, insurances, packing, tariffs, longer
channels of distribution, larger middlemen margins, special taxes, administrative
costs, and exchange rate fluctuations
\.Taxes, Tariffs, and Administrative Costs - ANSWERS-These costs results in higher
prices, which are generally passed on to the buyer of the product
\.Inflation - ANSWERS-Inflation causes consumer prices to escalate and the
consumer is faced with rising prices that eventually exclude many consumers from
the market
\.Deflation - ANSWERS-results in ever decreasing prices, creating a positive result
for consumers, but both put pressure to lower costs on everyone in the supply
chain
\.Middleman and Transportation Costs - ANSWERS-longer channel length,
performance of marketing functions and higher margins may make it necessary to
increase prices
\.Exchange Rate Fluctuations and Varying Currency Values - ANSWERS-currency
values swing vis-a-vis other countries on a daily basis, which may make it
necessary to increase prices
\.Approaches to Lessening Price Escalation - ANSWERS--Lowering Cost of Goods
WITH 100% VERIFIED ANSWERS
\.International Pricing - ANSWERS-- setting and changing prices are key marketing
decisions
- Of all the tasks facing the international marketer, determining what price to
charge is one of the most difficult
- An offering's price must reflect the quality and value the consumer perceives in
the product
Usually more localized than product or advertising decisions
- Maximizing profits depends on:
i.) Price sensitivity of local customers
ii.) Prices of competing products and services
- Companies tend to more closely align pricing policies across countries similar in
customer characteristics, economic conditions, and stage of the product lifestyle.
\.Skimming Pricing: - ANSWERS-setting the highest initial price that customers
really desiring the product are willing to pay
- May occur at the introduction stage of the product life cycle
- When a company is the only seller of a new or innovative product
- May be used to maximize profits until competition forces a lower price
Ex: Tommy Hilfiger and Rebook in India
,\.penetration pricing - ANSWERS-setting a low initial price on a new product to
appeal immediately to the mass market
\.cost-plus pricing - ANSWERS-Per-unit product costs are the sum of all past or
current direct and indirect manufacturing and overhead costs + additional costs &
expense when goods cross national borders.
\.total cost depends on - ANSWERS-Destination
Mode of Transport
Tariffs
Various fees
Handling charges
Documentation costs
\.Export Price Escalation - ANSWERS-the increase in the final selling price of goods
traded across borders
\.Flexible cost-plus pricing - ANSWERS-ensures that prices are competitive in the
contest of the particular market environment
\.Factors in Price Escalation - ANSWERS-- cost of exporting
- taxes, tariffs, and administration costs
- Inflation
- deflation
- middleman and transport costs
, - exchange rate fluctuations
\.Cost of exporting - ANSWERS-shipping costs, insurances, packing, tariffs, longer
channels of distribution, larger middlemen margins, special taxes, administrative
costs, and exchange rate fluctuations
\.Taxes, Tariffs, and Administrative Costs - ANSWERS-These costs results in higher
prices, which are generally passed on to the buyer of the product
\.Inflation - ANSWERS-Inflation causes consumer prices to escalate and the
consumer is faced with rising prices that eventually exclude many consumers from
the market
\.Deflation - ANSWERS-results in ever decreasing prices, creating a positive result
for consumers, but both put pressure to lower costs on everyone in the supply
chain
\.Middleman and Transportation Costs - ANSWERS-longer channel length,
performance of marketing functions and higher margins may make it necessary to
increase prices
\.Exchange Rate Fluctuations and Varying Currency Values - ANSWERS-currency
values swing vis-a-vis other countries on a daily basis, which may make it
necessary to increase prices
\.Approaches to Lessening Price Escalation - ANSWERS--Lowering Cost of Goods
